What is the Current Legal Situation for Online Betting in India?

While the legal framework of the country debates on what is legal and what is not, it is clear that Indians are gambling junkies.

Is Gaming Legal in India?
In India, as far as the law is concerned, online gaming remains in a grey area. The Indian state as guided by the country’s constitution has been given the power to set up specific laws around gambling. While the 1857 public gambling act has been adopted by select states, others have chosen to validate unique legislation to prohibit gaming. Although gaming remains illegal in the country, there is no specific law that states that online gambling is an illegal activity.

So far, offshore gaming sites are taking advantage of this by inviting Indian players to bet on almost everything. The law also does not indicate whether or not it is illegal to place wagers on international bookmakers. Although gambling legalities have been extensively debated over a period of many years, there is still no progress as far as online gambling clarity is concerned.

General Legislation
The 1867 gaming act is the primary piece of gambling legislation in the region. It is an act that was initially applicable to the ten states, which were controlled by the British but was later amended to be embraced by all other states. Given that the act does not give a precise definition of gaming, it is hard to define whether betting on certain games such as cricket is illegal like would be in a game such as the role of a dice.

Given that internet was invented way after the enactment of the law, it could be argued that it does not apply to online gambling. The information technology act of 2000 is, however, considered to relate to online gaming. The act makes provisions of particular offenses around online activities.
Although it gives the Indian government the supremacy to block any foreign site, the act does not highlight anything about gaming. With this power, the government has directed internet service providers to block access to particular foreign gaming sites, which are not clearly known.

Currently, only two states, including Sikkim and Maharashtra have introduced legislation regulations on online gaming. In Sikkim, the government has authorised the issuance of licenses to online gaming operators who wish to offer online services in the state, while Maharashtra completely prohibits online gaming.

The Effects of India’s Online Gaming
Most of the online gambling sites enticing Indian gamblers to their services are not local. Given that they operate out of the region, they are not particularly governed by Indian law. This, however, does not automatically mean that engaging the sites from India is legal. Although a state such as Maharashtra prohibits online gaming, no one has so far been prosecuted for using the online sites. While online gaming laws remain unclear, it is advisable to use trustworthy and reputable sites that allow Indian players to wager.

Games of Luck Versus Games of Skill
In India, games of luck are forbidden, while games of skill are legalised. What is the difference? Well, games of skill are whereby a player increases their chances of success through understanding the game better. In that case, online betting is considered a game of skill. The more a player familiarises themselves more with a tournament or a sport, the higher their chances of winning in online betting. For instance, someone familiar with India’s matches is more likely to win in a bet than one without any knowledge. For this reason, in most Indian states, online gaming is deemed legal.

Games of luck, on the other hand, is whereby players do not have any impact on the result of the game. Roulette is a good example. Studying a game of roulette does not give a player any chances of playing better and winning. As soon as the ball is cast on the spinning wheel, it can land anywhere, and a win is fully dependent on luck.

On the question of when online betting will be legal by law in India, it is not clear. So far, there is no existing regime for online gaming. In the state of Nagaland, online gaming operates under the exclusion of games of skill. Here, certain online games are legalised as games of skills by the Nagaland Act.

Many Indians though just use international online bookmakers. Thepunterspage has compiled a huge guide for betting in India. As the popularity of gambling strongly grows from year to year, lots of sportsbooks now offer their service to Indian residents as well. That’s the reason why new punters should check the best platforms before placing their first bet.

Social Responsibility Guidelines
There is no legal framework prescribing the social responsibility of India’s gaming operators. The Nagaland rules, however, direct that online games offered within the state must only be played by persons aged 18 years and above. Despite the absence of regulations in other states, the gaming industry has enacted self-regulations to set standards. For instance, associations such as the Indian Federation of Sports Gaming (IFSG) and the All Indian Gaming Federation (AIGF) have set particular standards within their skills charter.

Some of these include:
• Age-gating and self-exclusion for player protection
• Transparency, such as disclosing gaming terms on their platforms as well as mechanics and gaming rules
• Financial integrity, including the regulation of deposited funds and the maintenance of transaction records
• The regulation of duration, targeted audience and content

Indian Lottery
In India, the lottery, which is a game of chance is allowed in many states but under strict regulations. Under the 1998 Lotteries Act, states are permitted to promote, organize or conduct lotteries based on prescribed regulations. While Punjab announced its intention of starting online lottery schemes, lotteries are prohibited in the state of Madhya Pradesh.

Online gaming may not be controlled by any particular legislation but other laws affect the industry, such as tax laws, exchange control regulations and anti-money laundering, among others.

Gaming in India presents many variations. For instance, wagering on cricket is deemed illegal while betting on the game of horse racing, which is considered a game of skill is legalised. Online Texas Hold’em Poker, which is viewed as a game of skill, is not legal in every state. Across the globe, online betting is only growing bigger by the day, and increasingly being regulated. A regulated framework not only offers legislative clarity but also helps in controlling underground activity and also creates a source for tax revenue.

In terms of the advancement of gambling practices, technology has played a significant role, and will in the years ahead continue to do so. As the world embraces the technology, India’s online gambling legislation may be amended to offer a clearer statement on what the law considers legal or illegal. Despite the unclear laws around online gaming in the region, it is still safe and possible to bet on many online platforms, including Betway, 22Bet, Bet365, Unibet, BetVictor and Betiton, among others.